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Digg Lays Off 37% Of Staff

Two top execs resign in the social media company's latest restructuring, organized by new CEO Matt Williams to shore up the bottom line.

Only five months after it let 10% of its workforce go, social media news website Digg on Monday laid off 37% of its staff and lost two top executives.

Chief revenue officer and publisher Chas Edwards resigned in the morning. Later that afternoon, CFO and human resources executive John Moffett disclosed he was leaving Digg. Moffett now is CFO at Vizu, according to his LinkedIn profile. Edwards has moved on to Google-backed Pixazza, and will continue to advise Digg, he wrote in a blog.

Digg gave pink slips to 25 of its 67 employees, reducing its workforce to 42 people, said former Amazon executive Matt Williams, who joined Digg as CEO about six weeks ago, in a letter to staff.

"We must significantly cut our expenses to achieve profitability in 2011. We've considered all of the possible options for reduction, from salaries to fixed costs," he said. "It's been an incredibly tough decision. I wish it weren't necessary. However, I know it's the right choice for Digg's future success as a business. I'm personally committed to help find new opportunities for everyone affected by the transition. Digg's board members have also offered to help find placements within their portfolio companies."

This is only the latest shakeup at Digg. Earlier in 2010, the news aggregation site launched new features that failed to attract a larger audience, and former CEO Jay Adelson left in April. Company founder Kevin Rose then took the helm, overseeing the redesign of version 4 -- the New Digg -- which debuted in August to generally poor user and advertiser ratings.

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